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Innovation height, spillovers and TFP growth at the firm level: Evidence from French manufacturing

  • DUGUET Emmanuel

    (EPEE - University of Evry)

We examine the contribution of incremental and radical innovations to total factor productivity (TFP) growth at the firm level. The first part of our analysis is dedicated to the determinants of innovation and reveals two different innovation regimes. On the one hand, radical innovations rely strongly on firm-level spillovers, including property rights, and formal internal research while, on the other hand, incremental innovations rely mostly on the adoption of equipment goods accompanied by informal research. We find that radical innovations are the only significant contributors to TFP growth so that innovation height matters. We also find evidence that TFP growth is better represented by an upward shift of the production function than by a continuous innovation measure. Overall, the growth gains that we find are comparable to the ones of the previous studies.

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File URL: http://econwpa.repec.org/eps/dev/papers/0411/0411017.pdf
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Paper provided by EconWPA in its series Development and Comp Systems with number 0411017.

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Length: 44 pages
Date of creation: 16 Nov 2004
Date of revision:
Handle: RePEc:wpa:wuwpdc:0411017
Note: Type of Document - pdf; pages: 44
Contact details of provider: Web page: http://econwpa.repec.org

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  1. Zvi Griliches, 1995. "The Discovery of the Residual: A Historic Note," Harvard Institute of Economic Research Working Papers 1742, Harvard - Institute of Economic Research.
  2. Godfrey, Leslie G, 1983. "Testing Non-Nested Models after Estimation by Instrumental Variables or Least Squares," Econometrica, Econometric Society, vol. 51(2), pages 355-65, March.
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  4. Celia COSTA CABRAL & Praveen KUJAL & Emmanuel PETRAKIS, 1998. "Incentives for Cost Reducing Innovations under Quantitative Import Restraints," Annales d'Economie et de Statistique, ENSAE, issue 49-50, pages 479-493.
  5. José Miguel Benavente, 2002. "The Role of Research and Innovation in Promoting Productivity in Chile," Working Papers wp200, University of Chile, Department of Economics.
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  8. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
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  11. James Bessen & Eric Maskin, 2006. "Sequential Innovation, Patents, and Imitation," Economics Working Papers 0025, Institute for Advanced Study, School of Social Science.
  12. Duguet, E., 2000. "Knowledge Diffusion, Technological Innovation and TFP Growth at the Firm Level : Evidence from French Manufacturing," Papiers d'Economie Mathématique et Applications 2000.105, Université Panthéon-Sorbonne (Paris 1).
  13. Lööf, Hans & Heshmati, Almas & Asplund, Rita & Nåås, Svein-Olav, 2001. "Innovation and Performance in Manufacturing Industries: A Comparison of the Nordic Countries," SSE/EFI Working Paper Series in Economics and Finance 0457, Stockholm School of Economics.
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  15. Russell Davidson & James G. MacKinnon, 1980. "Several Tests for Model Specification in the Presence of Alternative Hypotheses," Working Papers 378, Queen's University, Department of Economics.
  16. Corinne BARLET & Emmanuel DUGUET & David ENCAOUA & Jacqueline PRADEL, 1998. "The Commercial Success of Innovations: an Econometric Analysis at the Firm Lebel in French Manufacturing," Annales d'Economie et de Statistique, ENSAE, issue 49-50, pages 457-478.
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